Debtors receivable problem
ABCD
(Querist) 30 March 2013
This query is : Resolved
Dear Sir/Madam,
I am a small trader having a turnover of less than 30lacs. My Debtors dont pay me in time in given credit period. Due to which i am facing cash crunch in my business. Many follow up phone calls for payments are made but the debtors give money on lag of more than 6 months and that too they dont give us bill to bill amount. they give 10% - 15% less of bill amount. As we loose margin and receive amount very late.
I total have dues to recover from a party that gives very late is 4lacs.
Kindly help me so that they give money in time.
ajay sethi
(Expert) 30 March 2013
when you enter into any contract with any party see that your documentation is proper . insist on purchase order . accept the order and insist that in the event payment is not made within 30 days interest would be charged at 18%pa . only if purchaser agrees to these conditions supply the goods . obtain signature on delivery challan . if possible inoist on post dated cheques for supplies made
R.K Nanda
(Expert) 30 March 2013
no more to add.
Raj Kumar Makkad
(Expert) 30 March 2013
Increase your margin of profit anticipating late payment with deduction of payment to the extent of 15%. If it already goes more than 15% as on today and you further insert the clause of penal interest @24% p.a.with an arbitration clause at your own discretion. I shall definitely safeguard your interests.
Sudhir Kumar, Advocate
(Expert) 31 March 2013
legal advise has been given by Mr Sethi. Commercial advise cannot be expected here.
